Entertainment & Media Outlook 2011-2015 - PwC

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InternetMarket definitionWired and mobile internet access revenueconsists of fees paid by consumers to internetservice providers (ISPs) and to wireless carriersfor internet access via mobile devices, whetherprovided for a standalone service or as part ofa service bundle where the internet componentis estimated. Figures do not include spendingon entertainment content downloaded over theinternet or through mobile phones, which isincluded in the respective content chapters.
“High quality video content will be thekey driver for adoption of fibre. Othercontent-based services do not necessarilyrequire the bandwidth provided by fibre.”TelstraClear’s Head of Consumer Sales,Marketing and Products, Steve JacksonInternet access spending (NZ$ millions)Historical dataForecast dataNZ$ 2006 2007 2008 2009 2010 2011 2012 2013 2014 20152011-2015CAGRBroadband 329 425 515 622 624 635 697 741 777 814 5.5%Dial-up 171 135 94 38 31 26 22 17 13 8 -22.9%Mobile 16 18 35 56 89 104 182 292 432 542 43.7%Internet (wired and mobile) 516 578 645 716 743 765 902 1049 1222 1364 12.9%Sources: Commerce Commission, PwC New Zealand, Wilkofsky Gruen AssociatesInternet and mobiletechnology drive spendingInternet access is a key driver ofspending in most market segments.Increased availability and speed ofbroadband services in New Zealand,along with ownership and use of newdevices that rely on broadband tofunction most effectively, are two of themost important factors contributingto growth of the entertainment andmedia industry.Dial-up internet access has declinedsignificantly as broadband connectionshave become more widespread. Thistrend will continue as the availabilityof broadband increases, particularlyin rural areas. There are currently justover a million broadband-connectedhouseholds in New Zealand, but thisfigure is forecast to exceed 1.3 millionby 2015. Mobile internet subscribersare forecast to more than treble to3.75 million over the period.High speed networktakes shapeThe Government is making a significantinvestment to increase access to highspeed broadband through its Ultra-Fast Broadband (UFB) program andRural Broadband Initiative (RBI). Theprogrammes will increase take-up anddeliver the speeds necessary to drivegrowth in other entertainment andmedia sectors.Fast broadband will enable servicessuch as online video, streaming musicand over-the-top (OTT) television,where internet content is delivered to aTV with a wireless internet connectionor device such as a game console.The Government has set aside NZ$300million for the RBI; NZ$48 millionfrom reserve funds and NZ$252 millionfrom the new TelecommunicationsDevelopment Levy. At the time ofwriting, the Government had justsigned contracts with Vodafone andTelecom to add investment worthNZ$150-200 million. 11 ‘Key points on Telecom/Vodafone proposal’, Ministry of Economic Development, www.med.govt.nz, accessed 20 April 2011.New Zealand Entertainment and Media 2011-2015 | Outlook 17
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Entertainment & Media Outlook 2011-2015 - PwC

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